Correlation Between Riza Akin and BTG Pactual

Can any of the company-specific risk be diversified away by investing in both Riza Akin and BTG Pactual at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Riza Akin and BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Riza Akin Fundo and BTG Pactual Logstica, you can compare the effects of market volatilities on Riza Akin and BTG Pactual and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Riza Akin with a short position of BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Riza Akin and BTG Pactual.

Diversification Opportunities for Riza Akin and BTG Pactual

0.82

Correlation Coefficient

Riza Akin  BTG Pactual

Very poor diversification

The 3 months correlation between Riza and BTG is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Riza Akin Fundo and BTG Pactual Logstica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Pactual Logstica and Riza Akin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Riza Akin Fundo are associated (or correlated) with BTG Pactual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTG Pactual Logstica has no effect on the direction of Riza Akin i.e., Riza Akin and BTG Pactual go up and down completely randomly.

Pair Corralation between Riza Akin and BTG Pactual

Assuming the 90 days trading horizon Riza Akin Fundo is expected to under-perform the BTG Pactual. But the fund apears to be less risky and, when comparing its historical volatility, Riza Akin Fundo is 1.52 times less risky than BTG Pactual. The fund trades about -0.22 of its potential returns per unit of risk. The BTG Pactual Logstica is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  10,000  in BTG Pactual Logstica on September 15, 2024 and sell it today you would lose (912.00) from holding BTG Pactual Logstica or give up 9.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Riza Akin Fundo  vs.  BTG Pactual Logstica

Riza Akin Fundo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Riza Akin Fundo has generated negative risk-adjusted returns adding no value to fund investors. Despite latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

BTG Pactual Logstica

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BTG Pactual Logstica has generated negative risk-adjusted returns adding no value to fund investors. Despite latest weak performance, the Fund's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Riza Akin and BTG Pactual

The main advantage of trading using opposite Riza Akin and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Riza Akin position performs unexpectedly, BTG Pactual can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BTG Pactual will offset losses from the drop in BTG Pactual's long position.

The idea behind Riza Akin Fundo and BTG Pactual Logstica pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.